FAQs

What is a retail CBDC?

A retail CBDC is, for the most part, a digital version of cash. This means that you could use retail CBDC to purchase goods and services in-person, as you do now with physical cash, and online. It could be used through a phone app, much like how you use cards in your digital wallet.

Would a retail CBDC replace cash?

No, a retail CBDC would not replace cash. It would provide Australians with more ways to pay. The RBA would continue to provide cash, as it does now.

Is the RBA going to introduce retail CBDC?

No decision has been made to issue a retail CBDC. At this stage, the public is well-served by the existing payment options and systems available in Australia, and no clear public interest case for retail CBDC has emerged. However, the RBA and Treasury will continue to work closely to progress their understanding of the key policy issues. Any decision to introduce a retail CBDC would be made by the Australian Government.

Why is the RBA researching a retail CBDC?

Making payments have become more convenient following the rise of electronic payment methods. This suggests that the payment needs of the Australian public may be changing. As payment preferences become more digital, the RBA is exploring how the money it issues to the public could be modernised.

Who would be able to use retail CBDC?

A retail CBDC would be available to all households and businesses, just like cash.

What is the difference between retail CBDC and debit cards?

Debit cards are linked to a transaction account provided by banks or other private institution. Retail CBDC would be provided by the RBA, which means it would be a form of publicly issued digital money. Public money is the safest form of money. To learn more about different forms of money, please see Central Bank Digital Currency.

Is retail CBDC another form of cryptocurrency?

No, a retail CBDC is not cryptocurrency. Unlike cryptocurrency, it would be issued and fully backed by the Reserve Bank and would be convertible one-for-one with physical banknotes. This means that $5 of retail CBDC is always worth the same as a $5 banknote.

Will the government or RBA be able to see and control how I use retail CBDC?

If a retail CBDC were to be introduced, it would be designed in accordance with Australia’s privacy laws. This means that a government agency would need legal authority or your permission to view your data.

As part of our ongoing research, we will explore how we can ensure the highest level of privacy that could be reasonably offered in a retail CBDC.

How secure is a retail CBDC?

Retail CBDC would be designed with robust security measures to protect against fraud and cyber threats, ensuring your digital money is safe.